Notification of changes to the underlying fund of P51 Franklin Mutual European
29 Feb 2024
P51 Franklin Mutual European
We have been notified by Franklin Templeton Investment Funds (the “Company”) of upcoming changes to the underlying fund of the above named mirror fund (the “Affected Mirror Fund”) . These changes will take effect from 27 March 2024 (the “Effective Date”).
Summary of Changes
In light of investors demand, the Board of Directors of the Company has decided to reclassify the underlying fund of the Affected Mirror Fund from Article 6 to Article 8 under the European Union’s Sustainable Finance Disclosure Regulation (“SFDR”) and to create the required SFDR related disclosures. The SFDR is part of a package of legislative measures and seeks to strengthen disclosures made by asset managers and certain other financial services firms to their clients on the Environmental, Social and Governance ("ESG") characteristics of financial products.
The Company note that this will better reflect the ESG considerations that have already been part of the investment process of the underlying fund of the Affected Mirror Fund, with binding commitments to sustainability that are objective and data-driven, while maintaining its focus on value investing.
From the Effective Date, the Investment Objective of the underlying fund of the Affected Mirror Fund will be updated accordingly. In addition, “Sustainability Risk” will be added to the list of fund specific risks of the underlying fund of the Affected Mirror Fund.
Please refer to the Appendix opposite for full details of the changes applicable from the Effective Date.
The Company state that the changes do not amount to material changes to the underlying fund of the Affected Mirror Fund and are made solely to respond to the disclosure obligations resulting from the SFDR. While the portfolio composition and investment universe will be modestly impacted by the changes, ESG considerations were already part of the investment research and process of the underlying fund of the Affected Mirror Fund.
As such, the changes will have no material impact on the investment philosophy and process of the underlying fund of the Affected Mirror Fund. There will be no material change or increase in the overall risk profile of the underlying fund of the Affected Mirror Fund following the changes.
Policyholders do not need to take any action as a result of the change if they wish to remain invested in the Affected Mirror Fund.
We recommend that policyholders seek the advice of their usual investment adviser before making any investment decisions.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
